R&D Tax Facts - February 2024
Our R&D Tax Facts is a summary over the previous quarter of developments in the world of the R&D Tax Incentive (R&DTI) program. Detailed information can be found on the Insights section of our website.
New AAT decision – Development of customised basketball shoe not eligible under R&DTI
See our latest post for details of the AAT decision handed down in December 2023
Updated website guidance released by AusIndustry
AusIndustry have released some new guidance, including simple to understand video content around what an experiment and a hypothesis are.
Upcoming R&D tax deadline for 30 June year end companies
A reminder of an important, upcoming R&DTI deadline for businesses with a 30 June year end.
Eligible R&D activities undertaken between 1 July 2022 and 30 June 2023 need to be registered with AusIndustry by no later than Tuesday 30 April 2024. Registration of R&D activities is the first, vital step to access the generous R&D tax benefits via your annual tax return.
ATO – recent Alerts and issues around integrity rules
The ATO released updated guidance in December 2023, including 2 new taxpayer alerts, warning taxpayers and advisors about the ATO’s concerns regarding R&DTI arrangements they are reviewing. See: 'Tis the Season for Scrutiny – Two new R&D Taxpayer Alerts from the ATO’
This is in addition to guidance earlier in the year ‘Clarifying R&D program integrity rules’ that sets out some of the issues identified by the ATO in relation to the application of R&DTI integrity rules around:
R&D expenditure to associates
The ‘conducted for’ test
Aggregated turnover for determining eligibility for Refundable R&D Tax Offsets
Overseas expenditure and requirement for an overseas finding
Expenditure not at risk.
None of these issues are new or controversial, but taxpayers and advisors should note that these are current focus areas, and likely indicative of heightened ATO compliance activity.
R&D Tax Transparency report
A reminder that this will be the first year that the ATO publishes R&D tax transparency reports.
See: Navigating Transparency: Upcoming Publication of R&D Tax Incentive Claim Information